Definition
Define a business
A business is an organisation that attempts to satisfy the needs and wants of the community by providing goods and/or services.
What is the #1 goal for all businesses
Profit
List 2 factors of how businesses can be classified
(50 points each)
size
location
industry sector
legal structure
External environments include factors the business have no control over.
Internal environments include factors the business can control.
List the 4 stages of a business
Establishment-Growth-Maturity-Post Maturity
(need to name all 4 to get the 100 points)
Define Needs and Wants
Want is a desire for an item to improve the standard of living
How many business fail in the first 3 years of their operating?
60%
what do we call an organisation of 5 or fewer employees (including the owner)?
A microbusiness
Who is a stakeholder?
A stakeholder is any group or individual who has an interest or is affected by the activities of a business.
Name the 3 major phases of post maturity
Renewal, steady and decline
(need to name all 3 to get the points)
Define a service
A service is a non-physical item that can be purchased (they cannot be handled or seen)
What is the difference between gross profit and net profit
revenue - cost of goods = gross profit
gross profit - expenses = net profit
What are the three classifications used to categorise businesses based on their geographical spread?
Local, national, global
list 3 internal influences
any 3 of the below:
Product-location-management-resource management-business culture
Name 3 reasons why a business might struggle to reverse their decline phase.
any 3 of the below (100 points each)
Difficult to borrow money because financial institutions are reluctant to lend money to high-risk businesses.
Suppliers make businesses pay up front
Products become obsolete, leaving the business with unsold stock.
Well-qualified employees may begin to leave and seek better opportunities
Define entrepreneur
Someone who starts, operates, and assumes the risk of a business in the hope of making profit.
List 4 roles of a business
any 4 of the below are accepted:
Profit - Quality of life - wealth - entrepreneurship - innovation - choice - income - employment
List 4 legal structures
Sole Trader
Partnership
Private company
Public Company
List 4 external influences
any 4 of the below (50 points each)
economic-financial-geographical-social-legal-political-institutional-technological-competitive-change in market
Name 4 different ways a business ceases to exist
Any 4 of the below (100 points each):
voluntary - involuntary - bankruptcy - administration - receivership -liquidation
Define inputs and outputs
Inputs: resources (labour, finance, equipment) that a firm uses to produce outputs.
Outputs: The goods and/ or services produces using various inputs
list 5 importances of a business to the economy
any 5 of the below (100 point each):
employment and income-taxes to government -consumer choice- quality life-encourages competition-exports products-encourages research and development into new products
When classifying a business according to industry sector, there are five classifications, list them.
Primary
Secondary
Tertiary
Quaternary
Quinary
List 5 different types of stakeholders
Any 5 of the below
Society/General public-employees-shareholders-customers-environment-managers
Name 5 factors leading to a business decline
Any 5 of the below (100 points each)
Lack of demand for the product-poor location-failure to plan-increased competition-failure to meet customers demand-ignorance of competition - unfavourable economic condition - failure to price product- lack of management skills- failure to adapt to changes